“Industrie 4.

0” and Smart Manufacturing – A Review of Research Issues and Application Examples

Review:

“Industrie 4.0” and Smart Manufacturing – A Review

of Research Issues and Application Examples
Klaus-Dieter Thoben*1,*2, Stefan Wiesner*1,†, and Thorsten Wuest*3
*1
BIBA – Bremer Institut für Produktion und Logistik GmbH at the University of Bremen, Hochschulring 20, 28359 Bremen, Germany
†
Corresponding author, E-mail: wie@biba.uni-bremen.de
*2
Faculty of Production Engineering, University of Bremen, Badgasteiner Straße 1, 28359 Bremen, Germany
*3
Industrial and Management Systems Engineering, Benjamin M. Statler College of Engineering and Mineral Resources, West Virginia University,
PO Box 6070, Morgantown, WV 26506, USA

1 A fourth industrial revolution is propagated in

2 global manufacturing. It is based on the
3 introduction of Internet of Things and Servitization
46 1. Introduction
4 concepts into manufacturing companies, leading to 47 Three industrial revolutions have led to paradigm
5 vertically and horizontally integrated production 48 changes in the domain of manufacturing so far:
6 systems. The resulting Smart Factories are able to 49 mechanization through water and steam power, mass
7 fulfill dynamic customer demands with high 50 production in assembly lines, and automation using
8 variability in small lot sizes while integrating 51 information technology. However, over the past years,
9 human ingenuity and automation. To support the 52 industry, together with researchers and policy makers
10 manufacturing industry in this conversion process 53 worldwide have increasingly advocated an upcoming
11 and enhance global competitiveness, policy makers 54 fourth industrial revolution (see Fig. 1.).
CPS
12 in several countries have established research and
13 technology transfer schemes. Most prominently, PLC / Robots

14 Germany has enacted its ‘Industrie 4.0’ program,

15 which is increasingly affecting European policy, Assembly Line 4th revolution
Internet ofThings
16 while the United States focus on Smart Internet ofServices
17 Manufacturing. Other industrial nations have 3rd revolution
IT automated
18 established their own programs on Smart Power Loom

Complexity
production
19 Manufacturing, notably Japan and Korea. This 2nd revolution
Division of work
20 shows that manufacturing intelligence has become mass production
21 a crucial topic for research and industry worldwide. 1st revolution
Water and steam
22 The main object of these activities are so-called power
23 Cyber-Physical Systems (CPS): physical entities late 18th early 20th early today Development
24 (e.g. machines, vehicles, work pieces etc.), which are 55
century century 1970s of production

25 equipped with technologies such as RFID, sensors, 56 Fig. 1. Four Industrial Revolutions
26 microprocessors, telematics or complete embedded 57 For example, the German government promotes the
27 systems. They are characterized by being able to 58 computerization of manufacturing industries in their
28 collect data of themselves and their environment, 59 ‘Industrie 4.0’ (I4.0) program [1,2], while in the United
29 process and evaluate this data, connect and 60 States Smart Manufacturing initiatives, like, e.g., the
30 communicate with other systems and initiate 61 Smart Manufacturing Leadership Coalition (SMLC),
31 actions. In addition, CPS enable new services that 62 drives and facilitates the broad adoption of
32 can replace traditional business models based solely 63 manufacturing intelligence [3]. Other major
33 on product sales. The objective of this paper is to 64 manufacturing countries, like Japan [4] and Korea [5]
34 give an overview of Industrie 4.0 and Smart 65 have also established national programs on Smart
35 Manufacturing programs, analyze the application 66 Manufacturing.
36 potential of CPS, starting from product design, 67 The fourth industrial revolution is characterized by
37 through production and logistics, up to 68 the introduction of the Internet of Things (IoT) and
38 maintenance and exploitation (e.g. recycling) and 69 Internet of Services concepts into manufacturing,
39 identify current and future research issues. Besides 70 which enables Smart Factories with vertically and
40 the technical perspective, the paper also takes into 71 horizontally integrated production systems. In this
41 account the economic side with the new business 72 world, highly flexible processes that can be changed
42 strategies and models made possible. 73 on-the-fly enable individualized mass production.
74 Variants are self-determined through items delivering
43 Keywords: Industry 4.0, Smart Manufacturing, 75 their own production data to intelligent machines [6],
44 Cyber-Physical Systems, Industrial Internet, Smart 76 which are aware of the environment, exchange
45 Factory 77 information and control processes in production and
Int. J. of Automation Technology submitted 1
 “Industrie 4.0” and Smart Manufacturing – A Review of Research Issues and Application Examples

1 logistics themselves. Data is collected along the whole 59 practices. In this paper, Smart Manufacturing refers
2 life-cycle in large quantities and stored decentralized 60 mainly to the use of intelligent machines, so called
3 to enable local decisions, but still transparent to be 61 Cyber-Physical Systems that are networked, context-
4 exchanged with partners. In order to realize this vision, 62 aware and self-controlled. The focus of the review lies
5 elements like machines, storage systems and utilities 63 on the European, specifically German, Industrie 4.0
6 need to be able to share information, as well as act and 64 initiative and Smart Manufacturing activities in the
7 control each other autonomously. Such systems are 65 United States. Other programs, e.g. in Japan and Korea
8 called Cyber-Physical Systems (CPS) [7]. 66 (Smart Factory) are recognized, but not analyzed in
9 CPS emerge through the complex networking and 67 detail.
10 integration of embedded systems, application systems, 68 The methodology of the review is based on two
11 and infrastructure, enabled by human machine 69 pillars, a literature review on the state-of-the-art in
12 interaction. In contrast to conventional systems used 70 Smart Manufacturing and I4.0, as well as studying
13 for production or logistics, CPS can be seen as systems 71 application scenarios from research and industry. For
14 of systems, which require the collaboration of different 72 the literature review, fundamental official publications
15 disciplines such as mechanical engineering, electrical 73 from the initiatives have been taken into account.
16 engineering, and computer science for their 74 Additionally, relevant papers identified through title,
17 realization [8]. 75 abstract and keywords from interdisciplinary search
18 The industrial transformation associated with the 76 engines such as SCOPUS have been analyzed.
19 Smart Manufacturing revolution and the introduction 77 Regarding the application scenarios, light-house
20 of CPS creates numerous challenges for organizations, 78 projects from research and industry, in some of which
21 technology and employees. All in all, as illustrated in 79 the authors are directly involved, have been studied in
22 Fig. 1., complexity in production has increased with 80 order to identify current and future research issues.
23 each industrial revolution. Dynamic socio-technical
24 systems have emerged, that consist of a great number
25 of tangible, intangible and also human elements. This 81 3. Definitions and Frameworks
26 complexity has to be managed by appropriate methods 82 This section introduces definitions and frameworks
27 and tools. Furthermore, the interaction between 83 in the scope of Smart Manufacturing. First, the main
28 humans and machines requires the right interfaces and 84 initatives of Industrie 4.0 in Germany and Smart
29 concepts to be efficient and safe. New and innovative 85 Manufacturing in the United States are presented.
30 services are possible based on CPS technology, but 86 Following, other initiatives and related terms are
31 they also need new innovative business models to be 87 described.
32 profitable [9].
33 I4.0, Smart Manufacturing and the other initiatives 88 3.1. Industrie 4.0
34 aim to provide the foundation to overcome these 89 For Germany, having one of the most competitive
35 challenges and support manufacturing companies and 90 manufacturing industries in the world and a strong
36 their stakeholders in their transition to Smart 91 machinery and plant fabrication, it is vital to master the
37 Manufacturing. They aim to develop and deliver 92 challenges of a fourth industrial revolution. Therefore,
38 appropriate models, methods and tools for 93 the German government has established its Industrie
39 manufacturing companies, as well as establishing 94 4.0 program [1] to keep Germany a manufacturing
40 prototype implementations that can be used as 95 country. It is based on the assumption that “industrial
41 exemplary blueprints for other companies that are 96 production in the near future will be characterized by
42 interested in this development. 97 the strong individualization of products under the
43 The objective of this paper is to give an overview 98 conditions of highly flexible (large series) production,
44 about these initiatives, with a focus on I4.0 and Smart 99 the extensive integration of customers and business
45 Manufacturing, and provide selected application 100 partners in business and value-added processes, and
46 examples. Based on the results, current and future 101 the linking of production and high-quality services that
47 research issues for Smart Manufacturing will be 102 leads to so-called hybrid products” [11].
48 identified. The next chapter (2) introduces the scope 103 I4.0 comprises a paradigm shift from automated
49 and methodology of the review, while chapter 3 104 manufacturing towards an intelligent manufacturing
50 describes the different initiatives. Chapter 4 illustrates 105 concept. Physical and virtual world grow together and
51 application scenarios and research issues and the paper 106 objects (incl. machines) are equipped with sensors and
52 is concluded in chapter 5. 107 actuators [10]. The intelligent manufacturing
108 implementation will make use of concepts like the
53 2. Scope and Methodology 109 Internet of Things to facilitate this change. The
110 exclusive feature in I4.0 is to fulfill the individual
54 The scope of this review comprises an overview on 111 customer requirements with product variants in a very
55 current smart manufacturing initiatives, research 112 small lot size, down to one-off items [2]. Availability
56 issues and application examples. This includes trends 113 of all relevant information in real-time will enable the
57 in manufacturing to utilize the Internet of Things and 114 manufacturing system to meet customer requirements
58 related services, as well as the resulting industrial 115 without waste for re-configuration of assembly line or
Int. J. of Automation Technology submitted 2
 “Industrie 4.0” and Smart Manufacturing – A Review of Research Issues and Application Examples

1 set-up times through dynamic business and 45 consumption of raw material and energy
2 engineering processes (see Fig. 2.). 46 should be lowered.
47 Along with the actions in the key areas,
48 manufacturing companies have to develop new
49 business strategies for I4.0. Value networks and
50 profit / loss sharing will be strongly linked to the
51 individual customer problem. Responsibilities and
52 privacy rules are described in Service Level
53 Agreements (SLA) [1].
54 In Germany, the federal government has been
55 funding the research agenda Industrie 4.0 through
56 several programs during the last years. While the
57 Federal Ministry of Education and Research has
58 published seven calls with an overall funding of
59 € 120 million, the Federal Ministry for Economic
3 60 Affairs and Energy has funded projects with another
4 Source: Final report of the working group Industrie 4.0 [1] 61 € 80 million [12].
5 Fig. 2. CPS Vision for Industrie 4.0
6 In this context, the Smart Manufacturing and 62 3.2. Smart Manufacturing
7 logistics systems can not only generate the optimal
63 Smart Manufacturing is a term coined by several
8 value stream to fulfil the real-time demands, but also
64 agencies like the Department of Energy (DoE) and the
9 create new business models based on better predictive
65 National Institute of Standards and Technology
10 maintenance, robustness in product design and
66 (NIST) in the United States. Wallace and Riddick [13]
11 adaptive logistics.
67 describe Smart Manufacturing in short as “a data
12 Industrie 4.0 addresses research and development
68 intensive application of information technology at the
13 actions in eight key areas to support the adoption of its
69 shop floor level and above to enable intelligent,
14 principles in industry [1]:
70 efficient and responsive operations”. While there are
15 i. Standardization and reference architecture: 71 multiple more comprehensive definitions available
16 Collaborative partnerships of organizations in 72 (e.g. [14]), they all highlight the use of Information and
17 value networks requires a set of common 73 Communication Technology (ICT) and advanced data
18 standards in a reference architecture. 74 analytics to improve manufacturing operations at all
19 ii. Managing complex systems: The higher 75 levels of the supply network, be it the shop floor [15],
20 complexity of systems and products require 76 factory [16] or Supply Chain [14,17]. Some authors go
21 appropriate models for their management. 77 even a step further and extend the Smart
22 iii. A comprehensive broadband infrastructure 78 Manufacturing framework beyond manufacturing
23 for industry: The Internet of Things requires 79 itself, highlighting the lifecycle perspective [18]. This
24 a reliable and fast communication network 80 broad focus already highlights the close proximity to
25 infrastructure. 81 other established areas like Industrie 4.0 (see previous
82 section) and Intelligent Manufacturing (Systems) [19].
26 iv. Safety and security: Related to close human-
83 Smart Manufacturing incorporates various
27 machine interaction, manufacturing systems
84 technologies, including but not limited to CP(P)S, IoT,
28 must not harm people or the environment.
85 robotics/automation, big data analytics and cloud
29 Furthermore, data and information need
86 computing [20,21] to realize the vision of a data-driven,
30 access authorization and privacy measures.
87 connected supply network. An important aspect that
31 v. Work organisation and design: Along with 88 differentiates Smart Manufacturing from many other
32 the machines, also the environment and 89 initiatives, is the specific emphasis on human
33 processes of work will change, giving the 90 ingenuity within the framework. Humans are not to be
34 employee greater freedom and responsibility. 91 simply replaced by Artificial Intelligence and
35 vi. Training and continuing professional 92 automation on the shop floor but their capabilities are
36 development: In relation to the previous key 93 to be enhanced by smartly designing the customized
37 area, the worker needs to qualified through 94 solution for the specific area. The importance of
38 suitable training and life-long learning. 95 product and process information and data, enabling
39 vii. Regulatory framework: Together with the 96 technology and (human or machine inherent)
40 organizational changes, also legislation has to 97 knowledge is commonly accepted. Highlighting the
41 take new innovation into account, especially 98 broad and comprehensive scope of Smart
42 for privacy and liability regulations. 99 Manufacturing, its three main pillars are [14]:
43 viii. Resource efficiency: By improving 100  Plantwide optimization
44 productivity and resource efficiency, 101  Sustainable production
102  Agile supply chains
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 “Industrie 4.0” and Smart Manufacturing – A Review of Research Issues and Application Examples

1 In the United States, several federal funding 60 sense of communication, data processing and/or
2 agencies have calls for funding placed to drive Smart 61 sensing capability. In recent years, a sub-paradigm, the
3 Manufacturing. For example, the DoE has announced 62 Industrial Internet of Things (IIoT) emerged, focusing
4 up to US$ 70 million in funding in Smart 63 on the interconnectivity of industrial assets, like
5 Manufacturing [22], NIST had several calls for their 64 manufacturing machines, tools and logistics
6 Smart Manufacturing program with a budget of ca. 65 operations [33]. In this understanding, many of the
7 US$ 30 million per year. Several other initiatives offer 66 basic requirements are similar to the ones faced by
8 additional opportunities in this area or closely related 67 Smart Manufacturing and Industrie 4.0, e.g., the
9 ones, like the Smart Manufacturing Leadership 68 challenge of interoperability and privacy/security
10 Coalition (SMLC) or NSF’s Cybermanufacturing 69 issues [34]. Overall, IoT/IIoT can be understood as an
11 program. 70 enabling technology similar to CP(P)S [20,35].
71 Industrial Internet: The industrial Internet is
12 3.3. Other related terms and initiatives 72 understood as the unity of (industrial) machines and
13 Intelligent Manufacturing / Intelligent 73 software [36]. Their global outlet is the Industrial
14 Manufacturing Systems (IMS): Intelligent 74 Internet Consortium (IIC) (www.iiconsortium.org).
15 Manufacturing is sometimes used synonymously to 75 This basic understanding highlights the similarity
16 Smart Manufacturing. While the close collaboration of 76 towards CP(P)S and Industrial Internet of Things
17 the IMS organization with the several Smart 77 (IIoT) [37] as a more technology focused framework.
18 Manufacturing funding agencies and research 78 Some argue that the main difference between the
19 institutions support this, there is a notion that 79 Industrial Internet and Smart Manufacturing and
20 Intelligent Manufacturing may focus more on the 80 Industrie 4.0 is the more focused scope, mainly looking
21 technical aspects and less on the organizational ones. 81 at the machine and maybe shop-floor level instead of
22 Kumar’s [19] definition of an intelligent 82 the overall supply network [38]. Others understand the
23 manufacturing process as having “the ability to self- 83 Industrial Internet as the foundation for system wide
24 regulate and/or self-control to manufacture the product 84 optimization [36].
25 within the design specifications” shows that at least
26 some researchers see Intelligent Manufacturing more 85 4. Applications and Research Issues
27 focused on the analytics and control aspects. However,
28 the original definition from the later 1980ies by 86 In this section, two main topics are discussed. Firstly,
29 Yoshikawa [23] emphasize the importance of humans 87 selected application scenarios and use cases of Smart
30 within the system as well, supporting the similarity to 88 Manufacturing are presented. Derived from the
31 Smart Manufacturing. 89 selected application scenarios and enhanced by
32 Smart Factory: Smart Factory is a term used in 90 literature and experience of the authors, current and
33 different contexts for some time. Some might argue 91 future research issues in the context of Smart
34 that Smart Factory is focusing more on the individual 92 Manufacturing and I4.0 are discussed thereafter.
35 entity (plant level) [24–26] rather than the broader
36 supply network scope of Smart Manufacturing and 93 4.1. Application Scenarios & Use Cases
37 Industrie 4.0. In this case the Smart Factory paradigm 94 The selection of application scenarios was made to
38 relates strongly to IIoT and CPS [27]. However, other 95 present a broad variety in order to highlight the wide
39 sources refer specifically to the Industrie 4.0 initiative 96 scope of the initiatives. The application cases range
40 as the basis for the Smart Factory movement [5,28], 97 from technical initiatives implementing CPS in SME
41 with the Korean Smart Factory initiative being at the 98 intralogistics [39], over human robot interaction at the
42 forefront. Furthermore, the National Science 99 shop-floor level using sensors and image recognition
43 Foundation (USA) has issued a joint call for proposals 100 [40], to new business models around product
44 with the Korean National Research Foundation (NRF) 101 enhancing services based on lifecycle and sensor
45 specifically aiming at collaborations including the 102 data [41].
46 Smart Manufacturing domain, which indicates that the
103 4.1.1. Cyber-Physical Logistics System
47 broader perspective is shared by Smart Factory and
48 that the program’s scope is similar to Smart 104 The case company in this application scenario is a
49 Manufacturing and Industrie 4.0. 105 gear manufacturer from one of the first I4.0 lighthouse
50 Internet of Things (IoT) / Industrial Internet of 106 projects in Germany that has organized its processes
51 Things (IIoT): Intelligent Manufacturing and Smart 107 according to the principles of lean production. Stocks
52 Factory paradigms may be argued to be similar to 108 in production are kept at a low level despite a high
53 Smart Manufacturing and Industrie 4.0, the Internet of 109 number of variants and intralogistics are managed by a
54 Things (IoT) paradigm is more ICT oriented [29]. 110 container-Kanban-procedure in combination with a
55 IoT’s vision of ubiquitous computing [30] is to 111 milk run. For every machine, there is a delivery space
56 ‘connect’ the physical world with the virtual world and 112 where only one floor roller (transport unit for several
57 facilitate communication between all connected 113 load carriers) for exactly one production order can be
58 entities [31,32]. IoT requires its physical entities to 114 placed, and also one pick up area. A human operated
59 have certain amount of ‘smarts’ incorporated, in the 115 electric train services the machines every hour to pick
Int. J. of Automation Technology submitted 4
 “Industrie 4.0” and Smart Manufacturing – A Review of Research Issues and Application Examples

1 up finished orders and deliver supplies. The machines 48 delivery space of the machine, the number of cycles
2 are arranged in such a way that the train can reach all 49 and loops is lowered through networking the
3 machines by driving an “eight” course. At the 50 individual logistics units, reducing transport and
4 intersection of the loops, it is also possible to turn to 51 motion processes to a minimum. The reduction of
5 the area for incoming and outgoing goods. Each full 52 cycles of the milk run has measurable advantages for
6 hour all stations are service, picking off finished orders, 53 the productivity of the case company, because they
7 distributing them and noting which delivery areas are 54 have more time for their core activities in
8 empty. These free delivery spaces are equipped with 55 commissioning, shipping and storage. According to a
9 orders from the buffer stock in the following cycle. The 56 simulation based on the current capacity of the electric
10 fixed cycle time leads to a high fluctuation in floor 57 train, the number of cycles can be reduced by approx.
11 roller usage and waste of electric train capacity. The 58 68 %, while the number of driven loops in the cycles
12 complete loops are always serviced, although there 59 can be reduced by about 27 %.
13 might be no need for transport, as there is no up-to-date
60 4.1.2. Safe Human-Robot Interaction
14 information about collection and delivery orders.
15 A cyber-physical production system has been 61 Smart Manufacturing is different from the pure
16 established, featuring a cyber-physical logistic 62 automation focus of previous initiatives. For a smart
17 system (CPLS), to increase the efficiency of lean 63 robotics’ factory within the context of I4.0 and IoT,
18 production in this scenario, with many variations of 64 where high productivity is demanded by the market,
19 products and not completely levelled and synchronized 65 collaboration between human workers and robots is the
20 production lines. The aim of the CPLS is to increase 66 key. Human workers are essential in their role of either
21 the flexibility through autonomous decisions and 67 supervisor, collaborator and for jobs robots are not
22 enable a reduction of inventories due to the 68 trained or capable of. These so called co-bots
23 autonomous solving of errors in real time. The 69 (collaborative robots) [43] are a dedicated area of
24 demand-driven milk run is based on information about 70 research and several companies already brought forth
25 the occupancy of the delivery and pick up spaces. 71 their vision of such systems.
26 Furthermore, cyber-physical load carriers (CP-LC) 72 The constant human presence in or near the robot’s
27 with sensors to locate themselves and to monitor the 73 work area forces companies to rethink how a robotic
28 environmental conditions (e.g. temperature, 74 work space is organized and shared with its human
29 acceleration) which are affecting the components have 75 counterparts. Traditionally, the robotic work area was
30 been introduced (see Fig. 3.). 76 fenced of and prohibited for the humans to enter during
77 operation due to safety concerns (see Fig. 4.).

CPS – production area 1 CPS – production area 2 CPS – production area n

CPS – load carrier

CPS- CPS-
machine tool manufacturing logistics handling equipment

Legend
machine tool assistance system handling equipment product

load carrier CPS-capability production employee

31
32 Fig. 3. Scenario of the Cyber-Physical Production System 78
33 (following Reinhart et al. [42]) 79 Fig. 4. Traditional protection solution
34 The CP-LCs can communicate with other cyber- 80 Within the I4.0 initiative, the presented application
35 physical systems and can transmit their position to the 81 research focuses on new ways to a) ensure the safety
36 intralogistics employee. In this way he gets the 82 of human workers and b) limit the restrictions of a
37 information where delivery or collection needs are 83 divided workspace. The core of this robotic factory
38 before starting a new cycle. For this purpose, a 84 CPS development is the integration of dynamic
39 tablet PC is chosen on which the current needs are 85 characteristics of the individual components. The
40 displayed. On this device, the remaining processing 86 individual protection components register context,
41 times of the machines and logs of operational data are 87 situation and status of worker, machine, plant and
42 considered to estimate the completion dates of the 88 process and activate protective mechanisms before a
43 current production orders and thereby calculating the 89 hazard, e.g. collision, can occur. The production
44 optimal departure time. The employee can now decide 90 process will run without threats and interruptions and
45 based on this information when he starts the next tour. 91 this will achieve the level of security and safety,
46 Under the restrictions that the machine must not run 92 meeting worker safety legal requirements on the shop
47 “empty” and that only one order can be placed on the 93 floor. Symbiotic human–robot collaboration [37] is
Int. J. of Automation Technology submitted 5
 “Industrie 4.0” and Smart Manufacturing – A Review of Research Issues and Application Examples

1 defined for a fenceless environment in which 47 individual turnkey solutions, certified according to
2 productivity and resource effectiveness can be 48 aviation standards and approved by aviation
3 improved by combining the flexibility of humans and 49 authorities. Customers are airlines, which retrofit their
4 the accuracy of machines. Robotic CPS can enable 50 aircraft with the buyer furnished surveillance solutions
5 such human–robot collaboration with the 51 from the vendor. In general, the design, manufacturing,
6 characteristics of dynamic task planning, active 52 operation and maintenance of aircraft and (airborne)
7 collision avoidance, and adaptive robot control. 53 aircraft equipment are strictly regulated by authorities
8 Humans are part of the CPS design, in which human 54 (mainly EASA, FAA and local authorities), which
9 instructions to robots by speech, signs or hand gestures 55 means that in the case of changes the system has to be
10 are possible during collaborative handling, assembly, 56 re-certified, which is a long and expensive process.
11 packaging, food processing or other tasks. All of these 57 The company offers a Ground Station as extension
12 industrial tasks bring the focus of current research to 58 to the ASVS, which only allows viewing video data or
13 human robot collaboration on heavy payload robots. 59 searching and exporting specific chunks of it. It
14 The approach is to exhibit safe intermediate Human- 60 doesn’t have to be certified, as it is not part of the
15 Robot Collaboration (HRC) without any fencing. In 61 “flying equipment” and can thus be modified more
16 order to realize this, extra safety and protection 62 easily. The idea is to transform the Ground Station into
17 measures need to be implemented for a collaborative 63 a CPS that interfaces with the CVU/DVR to offer a
18 robotic cyber physical system (CPS) (see Fig. 5.). 64 web-based service which archives the video data
65 automatically and offers the access to the video data of
66 an airline on demand via internet. Additional
67 automatic analyses of video streams and logging data
68 can be added in the future to provide even more
69 services for the customer as well as system status data
70 for maintenance (see Fig. 6.).

19
20 Fig. 5. CPS protection solution
21 The human component is well connected through 71
22 different adaptor technologies, e.g. human position 72 Fig. 6. Video Surveillance as a Service Scenario
23 tracking, and safety distance parameters are important 73 The challenge for the company to develop an
24 considerations for worker safety in the robotic CPS. 74 appropriate CPS is on the one hand to modify and
25 The robotic CPS is a highly automated system as it 75 newly assemble the Ground Station for the proposed
26 removes the boundaries between the composite 76 service. Additionally, a new software will be required
27 elements and supporting their operational interactions; 77 to handle the proposed actions for the service. As
28 thus achieving a truly smart system with humans in the 78 service engineering has not been the core competence
29 loop, enabled by connected entities that are able to 79 of the company until now, especially support in
30 sense, interpret and react. 80 managing the service life cycle, from ideation over
31 4.1.3. Video Surveillance as a Service 81 Requirements Engineering and testing, is required.
82 Customer feedback has to be collected in order to
32 This application scenario describes a use case from
33 an ongoing European research project on Servitization 83 improve the service; this information can be also be fed
84 into the ideation phase for additional services.
34 of manufacturing. The case company is a vendor for
85 A major change for the company is the transition
35 the aviation sector, which offers fully integrated
86 from selling their video surveillance solution to
36 solutions for surveillance systems. This Aircraft
87 providing video archiving and analysis services. In
37 Security Video System (ASVS) is an integrated, video-
38 based infrastructure. As a modular solution, the system 88 order to make an innovative, but safe shift from a pure
89 product supplier to a product-service provider, there is
39 consolidates several components, all of which are
90 a need to identify if the service will be accepted by the
40 required by a universal surveillance system for
41 aviation. The focus of the use case is on the Cabin 91 market, possibly also in other sectors (e.g. train
92 surveillance). Furthermore, it has to be ensured that the
42 Video Surveillance System (CVSS), which helps flight
93 service business doesn’t cannibalize the product
43 attendants to monitor the cabin area while the aircraft
94 business and is able to generate stable and continuous
44 is in flight. It generates video streams, which are stored
95 revenues. Thus, a business model innovation is
45 on a memory cartridge within the Central Video
46 Unit (CVU/DVR). These systems are customized, 96 required to offer the enhanced functionality to the
97 customer.
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 “Industrie 4.0” and Smart Manufacturing – A Review of Research Issues and Application Examples

1 4.2. Research Issues 60 developed to prevent unauthorized access to data. A

2 In this section, current research issues regarding the 61 second data security issue that needs attention is the
3 adoption of I4.0 and Smart Manufacturing are 62 access to connected machines and control systems
4 presented. The identified research issues are structured 63 from outside the companies. Due to the high level of
5 in three main categories: technical, methodological 64 integration and connectivity, this presents another high
6 and business case research issues. Some of the 65 priority target for criminal third parties, aiming at e.g.,
7 discussed research issues represent aspects that could 66 sabotage of the manufacturing processes.
8 be grouped within more than one of these categories. 67 Data quality: While Big Data and other data
9 In such cases, the grouping is based upon the most 68 analytics research streams gain significant attention,
10 significant factor in the eyes of the authors. 69 the issue of data quality is similarly important [44].
70 With the increasing amount of manufacturing data
11 4.2.1. Technical Research Issues 71 available, it presents a challenge to ensure the integrity
12 Standards/interfaces: In the global economy, supply 72 and quality of the captured and communicated data.
13 networks are formed in the majority of cases by a 73 Low quality data may lead to results that are
14 number of heterogeneous entities. Heterogeneous in 74 endangering the data based optimization and
15 this case includes different dimensions like, e.g., 75 monitoring systems. Automated data quality
16 company size, location, but also the used software 76 monitoring algorithms need to be developed and
17 solutions. While some companies might choose 77 evaluated in a manufacturing environment to support
18 proprietary solutions available on the market, others 78 the human users and help to improve the trust in data
19 might prefer (or are forced to by, e.g., economic 79 based decisions. Another aspect of data quality is the
20 means) self-developed or open-access solutions. When 80 heterogeneity of manufacturing data, especially when
21 companies with different systems choose to work 81 looking at the whole lifecycle of a product. The
22 together, the interoperability is a major issue that needs 82 annotations of the data entities are very diverse and it
23 to be addressed to enable Smart Manufacturing. This 83 is an increasing challenge to incorporate diverse data
24 is e.g. reflected in the CPLS use case, where machines, 84 repositories with different semantics for advanced data
25 transport systems and human interface devices from 85 analytics. Systems like the Semantic Mediator [45],
26 different vendors have to collaborate. Due to the 86 applied in the CPLS case need to be developed further
27 dynamic and complex nature of manufacturing, a ‘one 87 and included in the standards mentioned before.
28 of a kind’ integration will not suffice but commonly 88 Sensors/actuators: With regard to sensing systems,
29 respected standards are needed to facilitate formation 89 significant progress has been achieved in recent years,
30 and operation of successful Smart Manufacturing 90 regarding quality of measurements, size of the systems
31 supply networks. 91 and price. However, with the increasing demand of
32 Data analytics: Data analytics or Big Data are a core 92 sensors and real-time control of manufacturing
33 component of the data based Smart Manufacturing and 93 processes like in human-robot interaction, also the
34 I4.0 initiatives. Data analytics are essential to connect 94 requirements towards sensors and the systems they are
35 the captured sensor (and other manufacturing/supply 95 embedded in increased. Reliability, energy
36 chain related) data and the humans in the loop. The 96 consumption and communication protocols are just a
37 increasing degree of automation of Smart 97 few areas where more work has to be conducted for
38 Manufacturing Systems with real-time data 98 adoption of Smart Manufacturing on a broad scale.
39 availability and automated monitoring and control
99 4.2.1. Methodological Research Issues
40 depend on strong algorithms supporting human
41 decisions. The co-bots application case e.g. 100 Reference Models: To enable the description of
42 emphasizes the importance of advanced and reliable 101 complex concepts for the migration to Smart
43 data analytics algorithms as it is the foundation of the 102 Manufacturing / I4.0 and the definition of demands and
44 safe collaboration between humans and robotic 103 requirements for specific application domains,
45 systems at the envisioned open shop floor. 104 reference models are needed. A Reference
46 Data security issues: I4.0 and Smart Manufacturing 105 Architecture Model has been created for Industrie 4.0
47 are by definition very data focused. With CPS 106 (RAMI 4.0) that aims to integrate the different aspects
48 connecting all entities and allowing real-time data 107 required for dynamic cooperation in value networks.
49 capturing and exchange using smart sensors and 108 This includes vertical networking of the means of
50 wireless communication protocols. More and more 109 production, the workpiece and the associated data, as
51 cloud based services provide additional functionality 110 well as horizontal networking beyond the single
52 and accessibility to manufacturing data from outside of 111 factory towards the formation of dynamic value
53 the facility. This does however come at a price: with 112 networks.
54 the increase in valuable data and the analytical means 113 In order to integrate all technical and commercial
55 to use them, the motivation for external parties with 114 aspects in one model, the perspectives of different
56 potential criminal intent increases as well, e.g. in the 115 application domains had to be understood. Existing
57 case of aircraft video surveillance. As the 116 approaches have been identified (e.g. IEC 62541,
58 manufacturing data is the core of the manufacturing 117 ISO13584-42 or ProSTEP iViP), but cover only partial
59 companies’ competitive advantage, systems need to be 118 aspects of the envisaged holistic view. The resulting
Int. J. of Automation Technology submitted 7
 “Industrie 4.0” and Smart Manufacturing – A Review of Research Issues and Application Examples

1 model contains the main aspects of Industrie 4.0 (see 50 interfaces/standards, visualization, data analytics, data
2 Fig. 7.). 51 security and reference models etc.
52 Requirements Engineering: Inadequate
53 Requirements Engineering (RE) is one of the main
54 sources for the failure of development projects and
55 culminates in exceeding budgets, missing
56 functionalities or even the abortion of the project [47].
57 Therefore, in the context of Smart Manufacturing,
58 adequate Requirements Engineering is also the key to
59 success or failure of every CPS. Ensuring
60 communication and consistency of requirements for
61 CPS is a challenge due to the variety of stakeholders
62 from different domains involved. Furthermore,
3 63 viewing CPS as a system of systems, the independence
4 Source: ZVEI, Platform Industrie 4.0 [46]
5 Fig. 7. Reference Architecture Model Industrie 4.0 64 of its elements and their evolutionary nature are
6 Hierarchy levels based on IEC 62264 are extended 65 challenging. This leads to exceptionally distributed RE
7 by a ‘Product’ and a ‘Connected World’ level. The life 66 activities with isolated RE approaches. In the aircraft
8 cycle of products and machines is represented 67 surveillance case, the new service engineering
9 horizontally, distinguished between types and 68 department was initially organizationally separated
10 individual instances. Finally, six layers describe the IT 69 from hardware and software engineering. This
11 representation of an I4.0 component in a structured 70 complexity leaves requirements fragmented among
12 way. Special characteristics of RAMI 4.0 are the 71 many disciplines and sometimes conflicting, unstable,
13 combination of life cycle and value stream with a 72 unknowable or not fully defined. RE processes need to
14 structured approach to define I4.0 components. RAMI 73 be able to handle competing stakeholder demands and
15 4.0 is about to be standardized as DIN SPEC 91345. 74 dynamically respond to continually changing
16 Visualization: Visualization is grouped under 75 requirements. Finally, the properties of the CPS are not
17 methodological issues but has also a strong technical 76 the sum of the properties of its elements. Rather, they
18 part. Visualization is an important vehicle to 77 emerge from the cumulative interactions of the single
19 communicate the complex results of data analytics to 78 systems. Therefore, RE methods and tools have to be
20 the stakeholders, such as the recorded video streams 79 able to manage emergent effects with predictable
21 and operational data from the aircraft surveillance case. 80 results [48].
22 It is challenging as the stakeholders have very different 81 Geisberger and Broy [8] emphasize the central role
23 foci and requirement towards the visualization and 82 of Requirements Engineering for CPS development,
24 granularity of the presented results. Visualization 83 integration, maintenance and evolution. According to
25 offers to illustrate the different levels, from very 84 their research agenda, main topics in this area include
26 detailed, e.g., machine tool level, to an overview, e.g., 85 involving users and other stakeholders from different
27 supply chain, level. Research and industry need to 86 domains actively into CPS development from the
28 work together on driving visualization research as it is 87 beginning, adaption of CPS to needs, habits and
29 a critical part of Smart Manufacturing acceptance in 88 competences of the users, specification of formal
30 real life. 89 requirements models, detailing of requirements and
31 Service/app marketplaces: It has been mentioned 90 mapping them to system elements, integration of
32 multiple times that Smart Manufacturing is an 91 mechanical engineering models with digital models
33 interdisciplinary field, with strong ties between 92 from software and systems engineering for the
34 engineering and computer science. App/Service 93 collaborative description of requirements, as well as
35 marketplaces gained significant attention in recent 94 their implementation, validation, evolution and
36 years as they offer flexibility, transparency and (in 95 communication between stakeholders from different
37 some cases) accreditation/security features. The 96 disciplines. Penzenstadler and Eckhardt [49] introduce
38 advances in cloud computing (cloud manufacturing) 97 a RE content model for requirements elicitation and
39 support this claim. Flexible app/service marketplaces 98 documentation at different levels that would have to be
40 that offer a set of core apps and allow users or 99 adopted by all stakeholders involved. Wiesner et al.
41 independent third parties to develop customized apps 100 [50] propose Natural Language Processing (NLP) as a
42 focusing on certain issues in the Smart Manufacturing 101 way to translate non-formal requirements to formal
43 realm are desired by industry and research. User- 102 descriptions in different disciplines, thus enabling
44 developed apps can range from granular scheduling 103 automated information processing. NLP techniques
45 apps to advanced supply chain wide data analytics apps. 104 can assist requirements engineers when writing
46 The aircraft surveillance system provider plans to offer 105 specifications, transforming requirements in natural
47 advanced video analysis services, some of which could 106 language into discipline specific models.
48 also be developed by third parties. There is a
49 significant overlap with research issue in

Int. J. of Automation Technology submitted 8

 “Industrie 4.0” and Smart Manufacturing – A Review of Research Issues and Application Examples

1 4.2.1. Business Case Issues 61 have had a high influence on competitiveness [52].
2 Privacy issues: Privacy issues are strongly related to 62 However, these traditional BMs have come under
3 data security issues. However, in this case it was 63 pressure with the global harmonization of
4 decided to separate the two areas. Whereas data 64 technological standards and the reduction of trade
5 security issues focus more on the technical ability to 65 barriers. Many researchers have suggested that
6 protect and preserve sensitive (manufacturing) data, 66 manufacturing firms in developed economies should
7 privacy issues in this case describe challenges 67 expand their role in the value chain by extending their
8 regarding the exchange of data, information and/or 68 products with services so they do not have to compete
9 knowledge within the company itself and within the 69 solely on cost [53,54]. Neely et al. [55] published a
10 supply network. With the dawn of Smart 70 study that shows five fundamental developments: “(1)
11 Manufacturing and the connected company, detailed 71 the shift from a world of products to a world including
12 manufacturing data is available for advanced analytics. 72 solutions, (2) outputs to outcomes, (3) transactions to
13 However, this presents a major thread for the core 73 relationships, (3) suppliers to network partners, and
14 competencies of specialized manufacturers. By 74 (5) elements to ecosystems.” The result are so called
15 obtaining precious data, competitors are able to not 75 Product-Service Systems (PSS), a framework
16 only ‘reverse engineer’ the products but, even more 76 describing the integrated development, realization and
17 problematic, derive the underlying knowledge and 77 offering of specific product-service bundles as a
18 capabilities. On the other hand, within supply networks, 78 solution for the customer [9].
19 companies may work together which are competitors 79 This is fully in line with the idea of Smart
20 in a different segment of the market. E.g. video data 80 Manufacturing, where CPS provide the solution for a
21 from aircraft surveillance belongs to the airline, is 81 certain problem through the outcome of their
22 stored by the service provider and is regulated by 82 application. Instead of one-off sales transactions, CPS
23 passenger privacy, with laws differing between 83 build relationships with other systems and their
24 countries. Within the supply network, the sharing of 84 environment. For example, access to lifecycle (usage)
25 information is beneficial for multiple reasons, e.g., 85 data may allow the manufacturers to improve their
26 quality improvements [51]. Developing mechanisms 86 processes and offer additional services around their
27 that ensure that the data is used only for the purpose it 87 core product, as in the case of aircraft video
28 is shared requires interdisciplinary research involving, 88 surveillance. As a result, suppliers, customers and
29 policy, law, business, computer science and 89 other partners become part of a networked ecosystem
30 engineering experts. 90 around the CPS. Gorldt et al. [56] have coined the term
31 Investment issues: The authors debated if this 91 “Cyber-physical Product-Service System” (CPSS) for
32 ‘(initial) investment issue’ should be included in the 92 the integration of the PSS concept and Smart
33 list as this is a rather general issue which stands true 93 Manufacturing. A manufacturing enterprise however
34 for most new technology based initiatives in 94 that changes from the fabrication of products to
35 manufacturing. However, in this case, the authors 95 offering CPSS solutions and transforms its supplier
36 believe that the interdisciplinary nature and 96 base into an ecosystem of network partners will have
37 complexity of Smart Manufacturing installments 97 to analyze and adapt various elements of its BM to stay
38 present (real or imagined) barriers especially for SMEs. 98 profitable and competitive. According to Osterwalder
39 Implementing Smart Manufacturing frameworks in a 99 and Pigneur [57], these elements comprise not only the
40 SME, such as the CPLS system, may require a 100 new value proposition, but also different customer
41 significant investment without a full estimation of the 101 segments and relationships, distribution channels, key
42 break even point from the start. The reliance on 102 resources, activities and relationship, as well as a
43 collaboration and the subsequent possibilities of 103 changed cost structure and revenue streams. This
44 process and organizational improvements are hard to 104 creates several challenges for the company (see Fig. 8.).
45 measure. The authors believe that strong Testbeds as
46 put together by the SMLC or Lighthouse projects internal view external view
47 (I4.0) are a good start to establish benchmarks and
48 successful examples highlighting the potential of such
49 an investment. However, there is a need for theoretical
50 research regarding the quantification and ROI on
51 Smart Manufacturing applications especially for SMEs customer
52 including the effects of collaboration in complex and 105
53 dynamic supply networks. 106 Fig. 8. Business Model Innovation
54 Servitized Business Models: In the manufacturing 107 From an internal viewpoint on how to develop and
55 industry, Business Models (BM) have traditionally 108 realize the CPSS. How are risks and opportunities
56 focused on the fabrication or assembly of more or less 109 distributed among the network partners? What is the
57 customized (physical) products and have generated 110 innovation effort compared to amortization time? But
58 revenue from their sales. The therefore required 111 as well from an external viewpoint on the CPSS offer.
59 machines, materials and qualified personnel cause high 112 What is the added value for the customer and the value
60 fix costs, so supply chain organization and efficiency 113 of data? Who is paying for which results?
Int. J. of Automation Technology submitted 9
 “Industrie 4.0” and Smart Manufacturing – A Review of Research Issues and Application Examples

1 The task for manufacturing enterprises is to 59 mainly based on the three use cases. As Smart
2 integrate the new and unknown value proposition of a 60 Manufacturing and I4.0 are such overarching,
3 CPSS and the associated collaborative arrangements 61 paradigm shifting initiatives, there are many more
4 into their BM without experience in this field. Building 62 research issues relevant today and most likely even
5 networks with unconventional business partners is 63 more tomorrow (in the future). The more I4.0 and
6 difficult and can bring incalculable risks. Innovative 64 Smart Manufacturing are accepted and adopted by
7 technologies have to be utilized for service provision 65 industry and academia, the more different fields and
8 and to develop closer relationships to the customer. 66 research areas discover the potential of their work
9 New stakeholders in the ecosystem affect the cost 67 within the greater system, the more traction Smart
10 structure and require new kinds of revenue models, 68 manufacturing and I4.0 will get and the more research
11 which are currently not elaborated in manufacturing 69 issues will surface.
12 industries. Wiesner et al. [58] have developed an 70 While there are already successful testbeds available,
13 approach, based on methods like the “Blue Ocean 71 I4.0 and Smart Manufacturing are still in their early
14 Strategy” [59] and the BM Canvas [57], which 72 stages. Given the attention and available grants from
15 supports manufacturing enterprises in this transition. 73 funding agencies and the severe interest from industry
74 (both large corporations and SMEs), it can be expected
75 that the near future will present rapid developments in
16 5. Conclusions 76 this area. Due to its interdisciplinary nature, advances
17 In this paper, the fourth industrial revolution, called 77 in basic research fields may find their way to industrial
18 ‘Industrie 4.0’ (Germany/EU) and Smart 78 application more rapidly than it was the case in past
19 Manufacturing (USA) has been in the focus. The 79 years. This may be a chance for researchers who have
20 momentum and traction both initiatives (and similar 80 not had much interaction with applied research in their
21 ones in several other countries) gained in recent years 81 field to collaborate with researchers of supplementing
22 highlights the rapid, paradigm shifting change the 82 fields and industry to see their work being used in real
23 manufacturing industry and manufacturing research 83 life applications.
24 are undergoing today. I4.0 and Smart Manufacturing 84
25 describe the transition towards a heavily data focused, 85 Acknowledgements
26 supply network wide integration of information and
86 This work has been partly funded by the European Commission
27 communication technology and increased automation, 87 through the FoF-ICT Project PSYMBIOSYS (No. 636804), by
28 while keeping the human in the loop. The goals are 88 the German Federal Ministry of Education and Research
29 manifold and diverse, with energy saving, 89 through the research project CyProS (No. 02PJ2461) and by the
30 sustainability (social, economic and environmental), 90 German Federal Ministry for Economic Affairs and Energy
31 agility/resilience, as well as quality and efficiency 91 through the InSA project. The authors wish to acknowledge the
32 improvements being in the center. 92 funding agencies and all the project partners for their
93 contribution.
33 Several application scenarios were presented that
94
34 have highlighted the wide scope of Smart 95 References
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